Law: Partnership Act, 1932

Section: 4

JUDGMENT Venkatarama Aiyar J. 1. This is an appeal by the plaintiff against the judgment of Balakrishmt Aiyar J., dismissing his suit C. Section No. 29 of 1931 on the file of the original side of this court. The plaintiff is a person with considerable experience in cinema business. Sometime prior to 26-2-1949 he entered into an agreement with the owner of a theatre called the Chitra Talkies in Komaleswaranpet, Madras, for taking it on lease for a period of four years with an option to renew the same for a further period of four years. In pursuance of this agreement he actually entered into possession of the theatre on 1-4-1949 and equipped it with the talkie Machinery, electric fittings, furniture and so forth so as to make it suitable for exhibiting films. Meantime on 26-2-1949 the plaintiff and the defendants had entered into a contract, Ex. P. 1 whereby they agreed to run the theatre in partnership. It is provided in Ex. P. 1 that the plaintiff was to obtain a registered lease deed for the premises and also a licence for running the theatre as a talkie house and that thereafter a regular partnership deed should be executed. The capital for the firm consisting of equipments and the furniture was fixed at Rs. 1,30,000 and the defendants paid the plaintiff a sum of Rs. 65,000 for their half share thereof. It was expressly provided in the agreement that "the benefits of the lease and of the furniture and fittings and other equipments and machinery and goodwill of the theatre together with the benefits of the licences obtained therefor should be the properties of the partnership." On the the same day the defendants agreed as per Ex. D. 7 to pay the plaintiff a further sum of Rs. 60,000 -in consideration of "all the pains and troubles taken and to be taken by him thereafter for the purposes of improving, equipping and furnishing the theatre". The plaintiff obtained a registered lease deed for the premises, Ex. P. 3 dated 19-5-1949 and a licence for running the talkie on 11-8-1949, both of them in his own name and a formal partnership deed, Ex. P. 2, was also executed on 5-9-1949. 2. As appears from paragraph 5 of the plaint and paragraphs 6 and 8 of the written…

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